In the past six months, oil, grain, copper and other commodity stocks have taken a nose dive -- with many taking only six months for the 80% wipeouts that took the tech sector two years. Chart watchers said more losses are expected. "All of commodities are collapsing," said Frank Lesh, broker and futures analyst at FuturePath Trading. "The oil charts are bearish. I expect commodities to [remain] under pressure in the first quarter of next year."
Chart watchers warn that the sheer momentum of the commodities selloff will likely carry losses even further. In other words, the very fact that oil has fallen by $100 and the stock of Potash of Saskatchewan by nearly $200 since the summer makes further declines very likely.
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